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Merck & Co., Inc. Selects Patheon as Supplier

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Merck & Co., Inc. Selects Patheon as Strategic Supplier TORONTO, Jan. 26, 2006 (Canada NewsWire via COMTEX) -- Patheon Inc. (TSX: PTI) today announced that Patheon has entered into a five-year master supply agreement with Merck & Co., Inc. (NYSE: MRK) to provide commercial manufacturing and pharmaceutical development services to Merck, and that Merck has selected Patheon as one of Merck's strategic partners for commercial manufacturing and pharmaceutical development services. The new master supply agreement is designed to facilitate the inclusion of additional products and projects as Merck implements a new strategic plan, which includes leveraging external capabilities and capacity. As a strategic partner for Merck, Patheon will be provided the opportunity to participate in future commercial manufacturing and appropriate product development projects. "As Merck implements its new supply strategy, we look forward to working with top-tier manufacturers, such as Patheon, to more effectively leverage external manufacturing across a broad spectrum of capabilities," noted Willie A. Deese, President, Merck Manufacturing Division, Merck & Co., Inc. Merck has awarded Patheon three new projects as the first step in this new relationship. One project is a late-stage development product for Patheon's Caguas, Puerto Rico, facility. A second project involves activity at Patheon's Cincinnati facility and a third project involves activity at Patheon's Toronto Regional Operations in Mississauga, Canada. These projects are expected to generate commercial revenues for Patheon in fiscal year 2007, if regulatory approvals for these products are obtained within the planned timelines. Patheon is currently providing development services in connection with these projects. Patheon's subsidiary, MOVA Pharmaceutical Corporation, and Merck have had a long relationship that commenced with a ten-year supply contract in December 1987 and that continues to this day. "We are very pleased that we are building on the strong foundation established by MOVA and look forward to the opportunity to deepen our relationship with Merck as a strategic supplier of commercial manufacturing and development services in the future," commented Robert Tedford, Chief Executive Officer, Patheon Inc. "This agreement recognizes the value of Patheon's full-service, value-added approach in satisfying our clients' needs." About Patheon Patheon (TSX:PTI; www.patheon.com) is a leading global provider of drug development and manufacturing services to the international pharmaceutical industry. Patheon operates a network of 14 facilities in the United States, Canada and Europe, employing more than 5,900 people and serving a client base of 180 pharmaceutical and biotechnology companies. Forward-Looking Statement This news release contains forward-looking statements with respect to Patheon, including its business operations and strategy and financial performance and condition. Although management believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to, currency fluctuations, the level of outsourcing services required by the pharmaceutical companies (and in particular our clients), the impact of changes in pharmaceutical development and manufacturing regulations and general economic and market factors (including inflation and changes in laws) and other factors discussed in materials filed with applicable securities regulatory authorities from time to time. About Merck Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck currently discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The Company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service. For more information, visit www.merck.com. Forward-Looking Statement This press release, including the financial information that follows, contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. The forward-looking statements may include statements regarding product development, product potential or financial performance. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Merck undertakes no obligation to publicly update any forward- looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect Merck's business, particularly those mentioned in the cautionary statements in Item 1 of Merck's Form 10-K for the year ended Dec. 31, 2004, and in its periodic reports on Form 10-Q and Form 8-K, which the Company incorporates by reference. %SEDAR: 00001700E SOURCE: Patheon Inc. Robert C. Tedford, Chief Executive Officer, Tel: [phone], Fax: [phone] [e-mail]; Nick A. DiPietro, President & Chief Operating Officer, Tel [phone], Fax: [phone], [e-mail] Copyright (C) 2006 CNW Group. 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